FedEx (FDX) Tops Weaker Q1 Expectations, But the Worst Isn't Over...
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Price: $99.48 +1.09%
EPS Growth %: -10.2%
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EPS Growth %: -10.2%
Financial Fact:
PROVISION FOR INCOME TAXES: 203M
Today's EPS Names:
CO, JW-A, FDS, More
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Shares of FedEx (NYSE: FDX) are dipping on the session following first-quarter 2013 results that exceeded lowered expectations, but issued guidance painted a dire picture for the global parcel shipper.
Revenue for the quarter rose 3 percent to $10.79 billion, with operating margin dipping 10 basis points to 6.9 percent from the same period last year.
Net income fell 1 percent to $459 million, or $1.45 per share.
Overall, the Street consensus was at revs of $10.7 billion and EPS of $1.40.
On September 4th, FedEx cut first-quarter EPS expectations from a range of $1.45 to $1.60 down to $1.37 to $1.43. At the time, the consensus was at $1.46. FedEx cited global weakness contraining growth for its FedEx Express unit more than expected.
Looking to the second-quarter,FedEx sees earnings of $1.30 to $1.45, compared with $1.67 expected by the Street. FedEx also cut its outlook for fiscal 2013 earnings, from a range of $6.90 to $7.40 down to $6.20 to $6.60, commenting, "This guidance assumes the current market outlook for fuel prices and does not include the impact of the cost reduction programs currently under review." The Street is at FY13 EPS of $7.04.
In addition, FedEx announced rate increases. Shipping rates will jump by a net average of 3.9 percent for U.S. domestic, U.S. export and U.S. import services effective January 7, 2013. The Company noted that "[t]he full average rate increase of 5.9 percent will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points."
Ahead of the opening bells, FedEx shares are indicated over 1.5 percent lower. Peer United Parcel Service (NYSE: UPS) is also lower on the session, to the tune of about 1 percent.
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Revenue for the quarter rose 3 percent to $10.79 billion, with operating margin dipping 10 basis points to 6.9 percent from the same period last year.
Net income fell 1 percent to $459 million, or $1.45 per share.
Overall, the Street consensus was at revs of $10.7 billion and EPS of $1.40.
On September 4th, FedEx cut first-quarter EPS expectations from a range of $1.45 to $1.60 down to $1.37 to $1.43. At the time, the consensus was at $1.46. FedEx cited global weakness contraining growth for its FedEx Express unit more than expected.
Looking to the second-quarter,FedEx sees earnings of $1.30 to $1.45, compared with $1.67 expected by the Street. FedEx also cut its outlook for fiscal 2013 earnings, from a range of $6.90 to $7.40 down to $6.20 to $6.60, commenting, "This guidance assumes the current market outlook for fuel prices and does not include the impact of the cost reduction programs currently under review." The Street is at FY13 EPS of $7.04.
In addition, FedEx announced rate increases. Shipping rates will jump by a net average of 3.9 percent for U.S. domestic, U.S. export and U.S. import services effective January 7, 2013. The Company noted that "[t]he full average rate increase of 5.9 percent will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points."
Ahead of the opening bells, FedEx shares are indicated over 1.5 percent lower. Peer United Parcel Service (NYSE: UPS) is also lower on the session, to the tune of about 1 percent.
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